What does it cost to employ someone in Argentina (employer contributions)?

Last verified: 26 Oct 2026 · Status: Changing

Short answer. On top of gross pay, a private employer pays 18% (20.40% for large services or commerce firms) for pensions, PAMI, employment fund and family allowances, 6% health insurance, and a work risk (ART) premium set by the insurer. Add a 13th salary and vacation pay. A worker on ARS 2,000,000 a month costs about ARS 33.2 million a year.

As of 26 Oct 2026. Rules in force at that date.

Key rules

Unified employer contribution. 20.40% for private employers whose main activity is services or commerce and whose annual sales exceed the "mediana tramo 2" limit of SEPyME Resolution 220/2019; 18% for every other private employer, including SMEs and large industrial companies (Law 27.541 art. 19). The current sales limits are set by the SME Secretariat and updated periodically; check the latest resolution.
Deductible minimum amount. Before applying that rate, the employer deducts ARS 7,003.68 (US$ 4.48) per worker per month, half that on each SAC instalment (Law 27.541 art. 22). Employers with up to 25 employees deduct a further ARS 10,000 a month on the whole payroll base (art. 23). Both amounts date from 2019 and the law contains no update clause. Infoleg shows no update to either amount at 26 Oct 2026 (checked).
Health insurance (obra social). 6% employer contribution (Law 23.660 art. 16 a), restored to 6% by Law 25.565 art. 80 per the Infoleg note; text). From 1 January 2027 the 6% is written into Law 23.660 itself, with no change in rate (Law 27.802 art. 165).
Work risk insurance (ART). A monthly premium paid by the employer to the ART it chooses, on the same base as pension contributions and paid with them (Law 24.557 arts. 23 and 27). The rate varies by activity, claims record and insurer. The latest official average in the sources is 2.97% of payroll (July 2018), published by the regulator (SRT); we found no 2026 official average, so ask insurers for a quote.
SAC (13th salary). One twelfth of the year's remuneration (LCT art. 121), paid in two halves by 30 June and 18 December, each 50% of the highest monthly pay of the semester (LCT art. 122). It bears contributions (Law 24.241 art. 6).
Vacation. 14 calendar days a year up to 5 years of seniority, rising to 35 (LCT art. 150), paid at monthly salary divided by 25 per day (LCT art. 155 a)).
No ceiling for the employer. The maximum base (ARS 4,769,631.49 from the October 2026 accrual period, ANSES Res. 284/2026 art. 3) caps only the employee's withholdings under Law 24.241 art. 9, not employer contributions.

2026 labor reform (in force). Law 27.802 (BO 6 March 2026, in force on publication, art. 217) adds the Labor Assistance Fund (FAL): 1% (large) or 2.5% (MiPyME) of the pension base, offset by an equal cut in employer contributions (arts. 60, 76). Decree 1228/2026 moved its start to 1 December 2026, and ARCA RG 5915/2026 (BO 26 Oct 2026) aligned RG 5907/2026, which now applies from the December 2026 accrual period. The same law created the RIFL reduced rate (2% plus 3% PAMI for 48 months) for qualifying new hires registered between 1 May 2026 and 30 April 2027 (art. 159; Decree 315/2026 art. 1).

What changes the answer

RIFL new hire. Unified rate falls to 2% plus 3% PAMI for 48 months; obra social and ART stay in full (Law 27.802 art. 159).
FAL start. Neutral for normal hires, but RIFL hires pay the FAL without the offset (Decree 315/2026 art. 8).
Collective agreement. Union and employer body charges, capped at 2% and 0.5% (Law 14.250 art. 9), and mandatory life insurance (amounts not reviewed here) come on top.
Activity and size. A services firm that outgrows mediana tramo 2 moves from 18% to 20.40%.

Worked examples

Assumptions: ARS 2,000,000 (US$ 1,278.85) gross a month, full time, under 5 years of seniority, SME at 18% with over 25 employees, no RIFL, no collective agreement charges. Pesos converted at dólar MEP ARS 1,563.90 per US$ on 23 Oct 2026, the dólar MEP selling rate, dolarapi.com (live rate: /data/mep/). ART at 2.97% is an illustration only.

Item	Time	Cost ARS	Cost USD
Gross salary, 12 months	Monthly	24,000,000.00	15,346.25
SAC, two instalments	30 Jun, 18 Dec	2,000,000.00	1,278.85
Vacation uplift, 14 days	At start of leave	186,666.67	119.36
Unified 18% on salaries	Monthly	4,304,872.08	2,752.65
Unified 18% on SAC	Jun, Dec	358,739.34	229.39
Unified 18% on vacation uplift	Once	33,600.00	21.48
Obra social 6%	Monthly	1,571,200.00	1,004.67
ART at 2.97% (not set in an official source)	Monthly	777,744.00	497.31
Total annual employer cost		33,232,822.09	21,249.97

Step by step:

Monthly base: 2,000,000 minus 7,003.68 = 1,992,996.32. At 18%: 358,739.34 a month, 4,304,872.08 a year (Law 27.541 arts. 19, 22).
SAC: 2 × (50% × 2,000,000) = 2,000,000. Each instalment: (1,000,000 minus 3,501.84) × 18% = 179,369.67, twice = 358,739.34.
Vacation: 14 days at 2,000,000 ÷ 25 = 80,000 a day, against 66,666.67 if the month is divided by 30. Uplift 14 × 13,333.33 = 186,666.67; 18% on it = 33,600. The divide by 30 comparison is the page's assumption, not a rule in LCT art. 155; payroll practice varies.
Total remuneration: 24,000,000 + 2,000,000 + 186,666.67 = 26,186,666.67. Obra social 6% = 1,571,200; ART 2.97% = 777,744.
Employer charges: 7,046,155.42 (US$ 4,505.50), 26.9% of remuneration. Total cost is 1.38 times twelve gross salaries.

Large services or commerce company (20.40%): unified contribution 5,323,506.24, total ARS 33,859,116.91 (US$ 21,650.44), ARS 626,294.82 more. Without ART: ARS 32,455,078.09 (US$ 20,752.66) for the SME.

Cost to do it: no fee or capital; paid monthly through the F. 931 return and VEP (RG 5907/2026 art. 10). Severance is extra.

Practical traps

Assuming the maximum base caps employer cost. It caps only employee withholdings (Law 24.241 art. 9).
Budgeting 12 salaries. SAC adds a 13th, plus contributions on it (LCT art. 121; Law 24.241 art. 6).
Relying on the ARS 7,003.68 deduction. It saves about ARS 1,261 a month per worker at 18%.

FAQ

What does the employee pay? 11% pension, 3% PAMI and 3% obra social, 17% before income tax and union dues (Law 24.241 art. 11; Law 19.032 art. 8; Law 23.660 art. 16).

Can contributions be credited against VAT? Partly, by the percentage points in Annex I of Law 27.541 (art. 21). The annex table is not reproduced here.

Is severance subject to contributions? No. Severance and unused vacation indemnity are excluded (Law 24.241 art. 7), though Law 27.541 art. 22 mentions contributions on unused vacation, so check the treatment with your payroll provider.

Are meal or health plan benefits subject to contributions? Not if they fit the closed list in new LCT art. 103 bis (Law 27.802 art. 31).